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A share of a stock with beta of 0.75 now sells for $50. Investors expect the stock to pay a year- end dividend of $3.

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A share of a stock with beta of 0.75 now sells for $50. Investors expect the stock to pay a year- end dividend of $3. The T-bill rate is 4 percent, and the market risk premium is perceived to be 8 percent. What is the investors' expectation about the price of the stock at the end of the year? Stock has a beta of 0.5 and investors expect a return of 5 percent. Stock B has a beta of 1.5 and investors expect a return of 13 percent. Use CAPM to find the risk-free rate and market return

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